The design of integrated electronic circuits (chips) is a complex process. Modern chip design methodologies use sophisticated computer aided design (CAD) programs to shorten design cycle times and improve the quality of the result. Each generation of CAD tools has become more complex, increasing the level of tool knowledge required by the chip designer to achieve a suitable result. Also, CAD tools must be upgraded while in service to accommodate new requirements imposed by the changing semiconductor technology, design methodology, and expectations for designer productivity.
Typically, CAD tools are developed by companies and sold or rented to designers or design teams. Various pricing schemes have been used including: per-seat, per-CPU-MIPS, per-user, and others. Typically, all of these pricing schemes restrict the number of copies and usage of the software and are accompanied by a maintenance charge that is accrued on a per time-unit basis, i.e., quarterly or yearly. These schemes are advantageous to CAD companies because revenue levels are established when the tool is sold and are typically sustained through the life of the design project or design program. The CAD company is motivated to provide good pre-sales support to get the order. However, from the designer's point of view, these pricing schemes and the associated business models fail to create a situation where the CAD company is motivated to make the designer successful.
A business model is needed that creates an incentive for the CAD company to have a designer succeed with his design program.